Big Tech companies are cutting jobs during a time of economic uncertainty. Even as the company plans to grow its workforce in the coming months, it is realigning business groups and roles after the last day of the fiscal year.
The layoffs affect less than 1% of Microsoft's 180,000-person workforce and follow no clear pattern with respect to geography or product division. They came after Microsoft slowed hiring in the Windows, Teams, and Office groups.
A small number of roles were eliminated today. Microsoft said in an email that they evaluate their business priorities on a regular basis and make structural adjustments as needed. In the year ahead, we will continue to invest in our business and hire more people.
Microsoft reported strong earnings in the third quarter with a 26% year-over-year increase in cloud revenue. The company lowered its Q4 revenue and earnings guidance due to foreign exchange fluctuations.
Microsoft usually makes changes for the new fiscal period after the July 4th holiday, as it has in the past.
Over the past few months, the tech sector has seen an increase in layoffs. Delivery, events, and the like have been the hardest hit by the impact. The unfavorable conditions have caused a knock-on effect. Thousands of layoffs are said to be part of a $1 billion cost-cutting initiative that is being considered byOracle.
A third of its recruiting team left last week. Hundreds of employees have been laid off by the company. Groups at Meta are bracing for firings after managers were told to leave poor performers alone. In the midst of one of the worst downturns in recent history, Meta has slashed its target number for new engineer hires.
This spring, a number of publicly- traded tech companies slowed hiring. Similar moves haven't been made by any of the companies.
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